Penalties

1. The Commission may by decision impose on a covered undertaking fines not exceeding 10 % of its total worldwide turnover in the preceding financial year where it finds that the undertaking, intentionally or negligently:
(a) fails to issue the citizens' capital warrant in accordance with Article 5(1);
(b) fails to take the measures required by the second sentence of Article 5(4);
(c) fails to notify a liquidity event in accordance with Article 5(5);
(d) supplies incorrect, incomplete or misleading information under Article 3(3) or Article 4;
(e) circumvents or attempts to circumvent Article 3(8).

2. The Commission may by decision impose periodic penalty payments not exceeding 5 % of the average daily worldwide turnover of the covered undertaking in the preceding financial year for each day of continued non-compliance, in order to compel compliance with the obligations referred to in paragraph 1.

3. Where a covered undertaking that is not established in the Union persistently fails to comply with the obligations referred to in points
(a) and (b) of paragraph 1, the Commission may by decision, as a measure of last resort and for no longer than the non-compliance persists, prohibit the making available of the goods and services referred to in point (a) of Article 3(1) on the internal market by that undertaking.

4. In fixing the amount of a fine or periodic penalty payment, the Commission shall have regard to the gravity, duration and recurrence of the infringement. Before adopting a decision under this Article, the Commission shall give the undertaking the opportunity to be heard.

5. The Court of Justice of the European Union shall have unlimited jurisdiction within the meaning of Article 261 TFEU to review decisions under this Article and may cancel, reduce or increase the fine or periodic penalty payment imposed.

6. Fines and periodic penalty payments imposed under this Article shall accrue to the general budget of the Union. They shall not accrue to the Reserve.